,FAC1503 Assignment 5 (QUIZ) Semester 1 2023
Question 1 of 39
3.0 Points
Please match the accounting term with the most suitable definition, example or description provided.
A. When all the financial information of a business entity that is needed to understand the
economic events and transactions were included in the financial statements, we can say that
the information adhered to the fundamental characteristic of ………………….
B. Reflects all the income earned and expenses paid by a business entity for a specific period.
C. Reflects: Assets = Equity + Liabilities
A1. Completeness
C2. Statement of financial position
B3. Statement of profit or loss and other comprehensive income
Question 2 of 39
1.0 Points
Understandability refers to the fact that reliable information should be neutral (without bias) in that it
should not present information in a manner that will achieve a predetermined result.
True
False
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Question 3 of 39
1.0 Points
Equity differs from liabilities in that liabilities are obligations which must be settled out of the assets
of the entity, whilst equity is not an obligation which has to be settled.
True
False
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Question 4 of 39
1.0 Points
The government is an example of internal users of financial information of any business.
True
False
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Question 5 of 39
1.0 Points
In certain instances, the completeness of the information alone is sufficient to determine its
relevance, for example, where information, irrespective of its materiality, can affect the decisions of
the user.
True
False
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Question 6 of 39
1.0 Points
The keeping of petty cash according to the imprest system is an example of a built-in control
measure.
True
False
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Question 7 of 39
1.0 Points
At year-end if there are material consumables and stationery on hand it is considered to be an
expense in the current year. A stocktake will be done to determine a value for the statement of profit
or loss and other comprehensive income.
True
False
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Question 8 of 39
1.0 Points
Investors uses the accounting information contained in the financial statements to:
Question 1 of 39
3.0 Points
Please match the accounting term with the most suitable definition, example or description provided.
A. When all the financial information of a business entity that is needed to understand the
economic events and transactions were included in the financial statements, we can say that
the information adhered to the fundamental characteristic of ………………….
B. Reflects all the income earned and expenses paid by a business entity for a specific period.
C. Reflects: Assets = Equity + Liabilities
A1. Completeness
C2. Statement of financial position
B3. Statement of profit or loss and other comprehensive income
Question 2 of 39
1.0 Points
Understandability refers to the fact that reliable information should be neutral (without bias) in that it
should not present information in a manner that will achieve a predetermined result.
True
False
Reset Selection
Question 3 of 39
1.0 Points
Equity differs from liabilities in that liabilities are obligations which must be settled out of the assets
of the entity, whilst equity is not an obligation which has to be settled.
True
False
Reset Selection
Question 4 of 39
1.0 Points
The government is an example of internal users of financial information of any business.
True
False
, Reset Selection
Question 5 of 39
1.0 Points
In certain instances, the completeness of the information alone is sufficient to determine its
relevance, for example, where information, irrespective of its materiality, can affect the decisions of
the user.
True
False
Reset Selection
Question 6 of 39
1.0 Points
The keeping of petty cash according to the imprest system is an example of a built-in control
measure.
True
False
Reset Selection
Question 7 of 39
1.0 Points
At year-end if there are material consumables and stationery on hand it is considered to be an
expense in the current year. A stocktake will be done to determine a value for the statement of profit
or loss and other comprehensive income.
True
False
Reset Selection
Question 8 of 39
1.0 Points
Investors uses the accounting information contained in the financial statements to:
